(Longish) Newbie w/ questions … Re: $3000 with no money down - Posted by Andrea
Posted by Andrea on April 04, 2000 at 11:23:45:
Hello to all!
Total newbie here…
I found this list about a week before the convention and was SO bummed that I wasn’t able to attend (though as fast and furious as my thoughts have been flying with the info on this list and the site in general, I don’t know whether I would have really been able to ‘get’ what a person should from such an event… my brain is quite full as it is
After doing my best to absorb every drop that I can, using up reams of paper in the process (like to be able to read ‘hard copy’ in bed) and doing some searchs for some of the simpler, more commonly asked questions and trying (at times in vain) to settle on one course of action and getting SUPER excited by nearly all of the approaches people take here (a few are WAY beyond my capicity to understand yet, but I’ll get there)… I FINALLY feel comfortable making a post.
And this post of Brian’s is the one I have to thank for that
As I said, I’ve bounced around with various ideas… have contacted a realtor re. a handyman house that was listed (it was gonna need handy person with a crane and jacks to help it); she turned us on to a banker in the area with a foreclosure property (and supposedly more on the horizon) which we’re unsure of what to do with exactly; I’ve purchased Lonnie’s books and read through DOW, we’ve started to ‘notice’ and poke around in some of the local MH parks (and the classifieds) getting a feel for rents, pricing, etc…; made great strides (for me) with my financial understanding with CALCULATOR POWER (should that be in caps?), and so on…
And just when I thought I’d settled on Lonnie deals as a starting point, I read THIS POST… arrrgggghhhh!
So here is the part I get, and the parts I don’t that someone may feel like helping me to understand better:
SFH owner wants $30,000
Brian negotiates $25,000 @ 12% for 36mos
Interest only payments (equal to $136/mo? do I really know how to calculate this?!)
until the end of the 36 mo at which point
$25,000 is due.
Brian’s payments to begin in 45 days.
House is advertised (at $44,000?) and offer made an accepted for asking price w/$3,000 cash down payment.
Now, here’s where I get a little fuzzy … Brian, you create a note with your buyers, yes? Do you pay off the original seller right away?
The way I’m understanding this… there’s been $19,000 equity created (assuming the $44,000 selling price or was the house sold at a bargain price to move it quickly?)… is that what was sold for $7,000?
Isn’t this something that could have been a simultaneous closing or flipped… and Brian’s ability to create a note simply made it that much more profitable for his part?
One of the things that I am really unclear on is the mechanics and costs involved with closings … knowing me, I’ll learn it best by doing… but meanwhile, what should I be reading?
Thanks in advance for any and all input and congrats Brian on a happy ‘out-of-towner’ deal! BTW, what sort of grapevine lead this guy to you in the first place?
I am way jazzed!
PS. Hope this doesn’t get posted twice, got bumped off the ISP …